Corporate pension plans experienced mixed changes in funded status in November amid declining discount rates and rallying equities. The Treasury yield curve lowered and remained inverted between the one- and 10-year tenors. Total-return plans likely suffered declines in funded status from lower discount rates. Many LDI-oriented plans saw improvements in funded status due to positive equity returns and protection against the reversal in discount rates. NEPC’s hypothetical pension plans witnessed a funded status reduction of 2.2% for the total-return plan compared to a gain of 2% for the LDI-focused plan.

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